Important Things to Consider in Retirement Planning

[Faith B]

When it comes to retirement planning, there are a few important things to consider. Inflation is one of the biggest concerns, especially for older people. A century ago, the average rate of inflation in the U.S. was 3.22%. Also, retirees should factor in recurring expenses, such as childcare, mortgage payments, and so on. These expenses will not be present when you stop working, so you will have to plan for these.

In most cases, most Americans own their homes, but this was not always the case. While a home was once considered a valuable asset, the housing collapse changed this perception and a lot of homeowners are entering retirement with their mortgages underwater instead of above water. Fortunately, there are a few ways to ensure that you'll have enough money in retirement to achieve your goals. Here are some of the most popular methods for saving money for retirement.

You should consider establishing a retirement income goal. This goal is based on cash availability in the future. You can start planning for your retirement at any time in your life. However, it's best to get started as early as possible. You can always tweak your plan later, but if you're unsure, it's never too early. If you're already in the workforce, retirement planning can be a crucial aspect of your financial plan.

The first step in retirement planning is to decide how much money you want to retire with. Identify your goals and prioritize the areas you can control. The next step is to choose the right strategy. It depends on your career stage, current financial status, and desired retirement date. A late-career can also start planning for their retirement later in life. The time horizon and the level of risk tolerance are important factors. Once you have a clear idea of what you want, you can choose the best plan.

In addition to your retirement savings, you should consider the cost of health care. You should determine whether you will be eligible for early Social Security benefits. You should also check the age requirements for receiving full Social Security benefits. In case you need long-term care, you should research and apply for long-term care insurance. It covers the costs of a nursing-home care. Aside from your retirement income, you should consider all aspects of your financial life when it comes to your future.

Protecting your assets is another important component of retirement planning. As you age, your medical costs will increase. Many people supplement their standard Medicare with a Medigap policy or Medicare Advantage. Another option for protecting their assets is annuities. They are similar to pensions but offer various options and need careful consideration. When choosing a plan, be sure to follow all of the guidelines and limitations. If you can't make an informed decision, consider consulting with a financial advisor.

 

[Deleted member 28127]

The health care is nowadays before even years from retirement there is even diabetic children or teenagers because they do not take care about what they eat and eating unhealthy foods so you can have illness before even being adult or retired person. There are some people that reach retirement in good health but it is a minority are practicing sports every day.

 

[Good luck]

It is good to plan for retirement even if it remains ten years to stop working to avoid any confusion or inconvenience when one finally stops working with the government and the gratuity is not forthcoming due to so many external debt that such particular country is facing.

 

[btaliat]

One needs to consider what will one be doing after retirement age. There should be proper plan before we finally retire. This will make sure that we don't fall victims of finding it difficult to fend for oneself after retirement. Aside this, managing health should be of paramount importance. This is because there is tendency for deteriorating of health after the retirement age.

 

[Alexandoy]

Inflation is also what scares me because in 10 years time the value of my money in the bank will certainly be diminished like 90% or even lower. We cannot stop the increase in price of goods and services because that is part of the life of our economy. What we can do with the money in the bank is to invest it somehow so that it can earn something to fight the inflation in the future. However, the younger generation may not be concerned with inflation since their retirement is in the far future. What's important in the general approach to retirement is the savings. If you have a substantial amount of money in the bank for your lifetime savings then that can be your cushion for retirement. You have to be aware that the pension plan of the government is not enough so you need to be prepared for any eventuality.

 

[Deleted member 28127]

Many people prefer to buy gold with money instead of letting it be saved at a bank account as inflation is affecting cash and not gold whose value is increasing.

 

[Kingsley]

I consider retirement plans a very serious issue and it shouldn't be taken with levity because retirement it is a time that people normally find it difficult to make plans as to what to do because time has pass them bye and generating capital to invest in a business at that time might be a bit difficult. And this days mostly in my country depending on one's children for help is not even an option because the children themselves are struggling with their own life too. They have not been able to find their feet let alone assist their parents in taking care of their children. Again the government is not helping matters in this regards because they didn't set up any plans for her citizens. The government reserve some amount of money claiming it wil cater do the aged people but this funds doesnt get to the target set of people, the funds are either emblezzled, looted , misappropriated or siphoned.

So consider very well the type of businessyou want to venture into or invest in, and make sure the returns will be steady and you must ensure it is something you love doing and something that will not put stress on you.

 

[sincerem]

That's why majority are using cryptocurrency as a means of avoiding inflation in the future. Crypto is simply a hedge over inflation, when your country's fiat currency falls adrift due to its prices of goods and services spiking and going out of control it affects the country's international transactions. As a result the currency of the country drops and the exchange rate fall adrift to others as well. That's some of the factors of inflation to a given country. But if you invest wisely into any of the digital asset investments you will simply protect your monetary asset when inflation occurs and your money value is seizable to deal with international transactions due to the price of the coin you're dealing with. If the coin spiked during the period, you'll simply on the profit side. That's one of the reasons why I don't joke with investing on cryptocurrency, it can bring lots of positives in the future.

 

[cmoneyspinner]

The best advice to give a person regarding retirement planning is to start when you are young. But! Sometimes life does not work out the way you planned. When I was young for years I had a great-paying job and I was slowly building my retirement “nest egg”. Sadly things took a bad turn at my job and I ended up resigning. I had to withdraw my money from my retirement fund and take it with me. I allowed my husband to take that money and invest in real estate. Then in America we had both a banking and a housing crisis, and the invested money was lost. As of today, I am in my 60s and just recently filed for social security. I am hoping that I can take some of the money, invest in cryptocurrency, and grow it! That's my revised retirement plan.

 

[Sotherefore]

Inflation is also what scares me because in 10 years time the value of my money in the bank will certainly be diminished like 90% or even lower. We cannot stop the increase in price of goods and services because that is part of the life of our economy. What we can do with the money in the bank is to invest it somehow so that it can earn something to fight the inflation in the future. However, the younger generation may not be concerned with inflation since their retirement is in the far future. What's important in the general approach to retirement is the savings. If you have a substantial amount of money in the bank for your lifetime savings then that can be your cushion for retirement. You have to be aware that the pension plan of the government is not enough so you need to be prepared for any eventuality.

You mean the value of our currency diminish by 90% ? Every ten years , Omo that is strong o because I know the economy of our country is depreciating on daily basis but even with this I did not even believe it is depreciating to that standard.

Generally I know that the value of our money is going down on daily basis and as a result of this I do not even think of investing or putting my money in the bank because that won't really be profitable to me in any way , the most important thing I am always interested to do is just to invest in real estate if I have the enough money , but if enough money is not there my main concentration will be to invest in a potential cryptocurrency for long-term purposes or maybe to invest in any other form of investment outside saving my money in the bank.

Retirement plan is absolutely necessary and it is even easier out there in the western country because every job you are doing is properly guided by the government that you will receive pension but here it is only people that are able to work for the government are capable of earning pension after retiring.

 

[Kendy]

Planning for retirement is actually a very wise decision for an individual and even 10 years to the end of retirement or 15 years to retirement is actually the right time to be intentional about your retirement goals, most especially if you are a worker for government organisations; where you are receiving your salary, you have hope of getting your gratuity and your pension at subsequent times. There are different retirement plans that some people adopt and in my geographical setting, their government and the workers actually engage in contributory pension fund where both the government and the workers involved contributes to a particular pension saving funds which will be disbursed at their retirement age.


Retirement planning is key and some potential retirees actually use the 10% to 15% monthly saving strategy while some actually invest in real estate properties; buying of lands, planting on them like using them for agricultural activities and rearing of livestock while some engage into building of houses and renting them out to tenants and this is what they use to survive in the long run. Some actually invest their savings in a fixed deposit, they divide their savings into two which is welfare and their health insurance scheme because there's no leverage for retirees health benefits in my country.

 

[Skysaint]

Planning for your retirement is actually the best thing to do for yourself while you are still working because it will be what you will hold into when the job is no more or is taken away from you. It is always best to plan your retirement age at an early age so you won't be caught up by it when the time finally comes.
There are certain things we should consider before making our retirement plan and will also help us know how we'd plan for it. You should know exactly when you are going to retire; for example, the particular year, whether it is still far off or it's around the corner. If years in the business or job is still far off then you won't be as bothered as someone who's retirement is only a few years away. Although in both cases it's always better to plan early.
Another factor to consider is to make a trip to the future and see if there's a possibility that you still shoulder much responsibilities at that period or not. This is because most people who retired early do face much challenge as they still got things to do like to train their kids in school, to feed the family, cloth and shelter them and many other unforseen responsibilities. But this is in contrast to those who might be free at this period, maybe because they have trained all their kids in school and they have established themselves, then you have a little to worry about during your retirement.